EXPLANATORY STATEMENT
Tariff Concession Instrument No. 1009271
Customs Act 1901
Background
Part XVA of the Customs Act 1901 (the Act) sets out a scheme under which Tariff Concession Orders (TCOs) may be made by the Chief Executive Officer of Customs (the CEO). A lower rate of customs duty applies to goods that are the subject of a TCO.
Under section 269F of the Act, a person may apply to the CEO for a TCO in respect of goods. If the CEO is satisfied that the application is not in respect of goods specified in section 269SJ of the Act, which sets out those goods that cannot be subject to a TCO, the CEO must decide whether the application meets the core criteria.
Section 269C of the Act provides that a TCO application meets the core criteria if, on the day on which the application was lodged, no substitutable goods were produced in Australia in the ordinary course of business. Section 269B of the Act provides that ‘goods produced in Australia’ has the meaning given by section 269D, ‘ordinary course of business’ has the meaning given by section 269E and ‘substitutable goods’ in respect of goods the subject of a TCO application, means goods produced in Australia that are put, or are capable of being put, to a use that corresponds with a use (including a design use) to which the goods the subject of the application can be put.
Subsection 269P(3) of the Act provides that if the CEO is satisfied that a TCO application meets the core criteria, the CEO must make a written order (a TCO) declaring that the goods the subject of the TCO application are goods to which a prescribed item of Schedule 4 to the Customs Tariff Act 1995 (the Tariff) specified in the order applies.
Mcphersons Consumer Products applied for a TCO in respect of certain chopping boards on 22 February 2010.
Instrument
TCO No 1009271 was made on 30 April 2010. It declares that those certain chopping boards are goods to which item 50 of Schedule 4 to the Tariff applies since the CEO was satisfied that no substitutable goods were produced in Australia. The general rate of duty on these goods is 5%. The rate of duty for the goods subject to the TCO is free.
Consultation
Subsection 269K(1) of the Act provides in part that as soon as practicable after accepting a TCO application as a valid application, the CEO must publish a notice in the Gazette which includes an invitation to any person who considers that there are reasons why the TCO should not be made to lodge a submission with the CEO. The CEO did not receive any submissions in response to this invitation.
Commencement
Subsection 269S(1) relevantly provides that a TCO is to be taken to have come into force on the day on which the application for the TCO was lodged. TCO No. 1009271 is taken to have come into force on 22 February 2010.
The TCO does not affect the rights of a person (other than the Commonwealth) as at the date of registration so as to disadvantage that person or impose liabilities on a person (other than the Commonwealth) in respect of anything done or omitted to be done before the date of registration. The rights of importers will be beneficially affected. Under paragraph 126(1)(r) of the Regulations, importers of such goods will be able to apply for a refund of duty on goods imported since the day on which the TCO is taken to have come into force. The TCO does not impose any liabilities on any person.
Overview
The Customs Act 1901, enacted by the Commonwealth Parliament, provides a framework for the regulation of imports and exports in Australia. One of the key mechanisms within this Act is the ability for the Chief Executive Officer of Customs to make Tariff Concession Orders (TCOs) which can lower the customs duty on certain goods. The Tariff Concession Instrument No. 1009271, introduced on 30 April 2010, addresses the need to facilitate trade by providing tariff concessions to importers of specified goods. In this case, the instrument concerns certain chopping boards, for which a zero rate of customs duty applies, reducing the general rate of 5% duty. The objective of this legislation is to encourage the importation of these goods by making them more affordable, thus benefiting importers and potentially the broader market. The instrument was made after McPhersons Consumer Products applied for the tariff concession, and no submissions were received opposing the order, indicating a smooth process without any significant public concerns.
Scope and Application
The Tariff Concession Instrument No. 1009271 applies to goods specified in the instrument, which in this case are certain chopping boards, and is issued under the Customs Act 1901. This Act applies to all persons and entities that import goods into Australia, particularly those seeking tariff concessions for specific goods. The instrument was made by the Chief Executive Officer of Customs in response to an application by Mcphersons Consumer Products, and it grants a concession on the customs duty for the specified chopping boards, reducing the rate from 5% to free. The instrument operates within the Commonwealth jurisdiction, as the Customs Act 1901 is a federal statute. The application of the Act does not extend to goods specified in section 269SJ of the Act, which outlines those goods that cannot be subject to a tariff concession order. The instrument's commencement date is the day the application was lodged, 22 February 2010, and it does not retroactively affect any rights or impose liabilities for actions taken before its registration.
Key Provisions
The primary sections of this legislation include sections 269F, 269C, and 269P(3) of the Customs Act 1901. Section 269F allows a person to apply to the Chief Executive Officer (CEO) of Customs for a Tariff Concession Order (TCO) in respect of goods. If the CEO is satisfied that the application meets the core criteria specified in section 269C, and that the goods are not specified in section 269SJ, they must make a TCO as outlined in section 269P(3). This TCO declares that the goods are subject to a prescribed item of Schedule 4 to the Customs Tariff Act 1995, effectively applying a lower rate of customs duty.
The Customs Act imposes several obligations on the parties involved. The CEO of Customs must ensure that the application for a TCO is valid and meets the core criteria. This involves verifying that no substitutable goods were produced in Australia at the time the application was lodged. Additionally, the CEO must publish a notice in the Gazette inviting any interested party to submit reasons why the TCO should not be made. The CEO also has an obligation to consider any submissions received before making a final decision on the TCO.
There are no specific offences outlined in the explanatory statement, but failure to comply with the requirements of the Act could potentially result in the TCO being invalidated or not granted. There are also no explicit penalties mentioned for breaches of the Act in relation to TCOs. However, any misuse or fraudulent application for a TCO could lead to broader legal consequences under other sections of the Customs Act or related legislation.
Upon the issuance of a TCO, the CEO must ensure that the new tariff rates are applied to the specified goods. Importers of these goods can benefit from the reduced tariff rates and may apply for a refund of any duties paid under the previous tariff rates, subject to the conditions set out in the Customs Act Regulations. The TCO does not affect the rights of any person as at the date of registration and does not impose any new liabilities on individuals or entities other than the Commonwealth.
In summary, the Tariff Concession Instrument No. 1009271, as explained in the accompanying statement, facilitates a process for applying for and granting tariff concessions on certain goods, provided they meet specific criteria and do not conflict with other provisions of the Customs Act 1901. The legislation ensures that the rights of existing parties are not adversely affected, while providing potential benefits to importers of the specified goods.